S&P 500 has biggest drop since November on Europe debt concern

Renewed concerns about economic conditions in Europe led to a selloff in stock prices Monday.

The Dow Jones Industrial Average, after rising for five consecutive weeks, fell 129.71 points to 13,880.08. The Nasdaq Composite Index was down 47.93 points to 3,131.17 and the S&P 500 Stock Index lost 17.46 points to 1,495.71.

On the day, the Nasdaq fell 1.51 percent, the S&P 500 fell 1.15 percent and the Dow declined 0.93 percent.

The financial markets reacted last week to a series of economic report including updates from the Department of Labor showing U.S. payrolls rose by 157,000 in January and original readings for November and December were revised higher.

Oil prices fell on Monday after rising sharply last week. Crude closed at $96.17 a barrel, down $1.60. Gold rose $5.80 to $1,676.40 an ounce.

Yum! Brands Inc. (NYSE: YUM) and Sysco Corp. (NYSE: SYY) are among 13 companies in the S&P 500 that report earnings Monday. About 73 percent of the 264 companies from the gauge that have released results this earnings season have exceeded profit projections, and 66 percent have beaten sales estimates, according to data compiled by Bloomberg.

Orders placed with factories increased less than forecast in December, reflecting a drop in non-durable goods that overshadowed gains in construction equipment and computers. Bookings climbed 1.8 percent after a revised 0.3 percent drop in November that was initially reported as unchanged, Commerce Department figures showed. The Bloomberg survey median called for a 2.3 percent gain.

McGraw-Hill Cos. (NYSE: MHP) sank 14 percent to $50.30. The U.S. Justice Department intends to file a civil lawsuit against S&P based on ratings in 2007 of certain collateralized debt obligations, the company said Monday. The Justice Department and state prosecutors may file civil charges this week against S&P, owned by McGraw-Hill, alleging wrongdoing in its ratings of mortgage bonds in the lead up to the 2008 financial crisis, according to two people familiar with the matter.

“A DOJ lawsuit would be entirely without factual or legal merit,” the company said in a statement.

Chevron Corp. (NYSE: CVX) lost 1.1 percent to $115.20. UBS cut its recommendation on the energy company to neutral from buy, citing the stock’s recent rally. The shares have gained 6.5 percent this year.